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Management · Q263

Management Accounting

Graduate and Post Graduate · Management · question 263

Q263

If fixed cost is 40000 and contribution margin per unit is 800 per unit, then breakeven of units will be

A.
60 units
B.
30 units
C.
50 units
Answer
D.
70 units

Answer: Option C

Solution

Answer: Option C
Solution:
Breakeven of units = Fixed cost ÷ Contribution margin per unit
= 800 = 50 units.